What are ETFs?
ETF stands for exchange traded funds. It is a portfolio of
stocks or bonds that is sold to investors on open exchanges. The
investor purchases these shares through a broker. ETFs are often
inexpensive and are generally indexed to a particular published
benchmark. They are not mutual funds however. Unlike mutual funds,
when the investor buys a share in an ETF, the portfolio does not
change. The price of the ETF or net asset value (NAV) can be found
throughout the trading day.